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Apple takes legal action against OpenAI for stealing trade secrets, causing a stir in Silicon Valley

Apple takes legal action against OpenAI for stealing trade secrets, causing a stir in Silicon Valley

Apple Files Lawsuit Against OpenAI

Apple has initiated a significant lawsuit against OpenAI and two ex-employees, claiming they have stolen the company’s trade secrets.

The lawsuit, submitted on Friday in the U.S. District Court for the Northern District of California, accuses them of systematically taking product designs, manufacturing methods, and supply chain strategies.

“This lawsuit alleges that a former Apple employee stole Apple’s trade secrets for the benefit of OpenAI. Apple brought this lawsuit to stop that from happening,” the legal document states.

The individuals named in the lawsuit are Chang Liu, a former senior systems electrical engineer at Apple, and Tang Yew Tan, a former vice president of product design. It’s claimed they began their employment with OpenAI in 2024 and this year, respectively, while taking unreleased Apple technology with them.

Chang Liu faces allegations of not returning his Apple-issued work laptop and, later, exploiting a bug to access the company’s network, allowing him to download “dozens of sensitive Apple hardware-related files.”

The complaint also asserts that Tan used Apple’s confidential information to benefit OpenAI and that he emailed himself information pertaining to the company’s suppliers before resigning.

This lawsuit could significantly affect the partnership between Apple and OpenAI, which started in 2024, as the hardware company plans to integrate OpenAI’s technology into the iPhone operating system.

After falling behind its competitors for years, Apple has been intensifying its AI initiatives.

OpenAI recently entered the hardware market by acquiring io Products, a company founded by former Apple designer Jony Ive, in a $6.5 billion deal last year. It’s worth noting that Tan previously worked under Ive.

Apple expressed its stance, stating: “At Apple, our teams are constantly developing breakthrough technologies to create the world’s best products and services, and protecting their work and intellectual property is something we take very seriously.”

“Recently, significant evidence has surfaced indicating that individuals employed by OpenAI have improperly exfiltrated Apple’s confidential information about our unreleased technologies, processes, and products. We always champion team efforts and innovation, and we are taking all appropriate steps to do so.”

The Post has reached out to OpenAI for their response.

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